Public Option: Under the Bus?

A number of news items came out over the weekend saying the public option was being excised from health care reform. This morning the White House is scrambling to reassure people this is not so.

However, the overall message is that while the Obama Administration wants the public option, the President would sign whatever Congress can pass, including a bill that does not include the public option. And there appears to be a strong movement within the Senate to kill the public option. Jacob Hacker explains why that would be more than a damn shame.

The New York Times‘s new pet conservative, Ross Douthat, seems to have noticed one of the massive inconsistencies in the fight from the Right against health care reform: By stoking the fear of senior citizens that their Medicare benefits will be cut, the GOP has placed itself in the role of defender of an entitlement.

Medicare’s price tag, if trends continue, will make a mockery of the idea of limited government. For conservatives, no fiscal cause is more important than curbing this exponential growth. And by fighting health care reform with tactics ripped from Democratic playbooks, and enlisting anxious seniors as foot soldiers, conservatives are setting themselves up to win the battle and lose the longer war.

The fact is, it’s the Right that wants to cut Grandma’s Medicare benefits, not the Left.

We’re already practically a gerontocracy: Americans over 50 cast over 40 percent of the votes in the 2008 elections, and half the votes in the ’06 midterms. As the population ages — by 2030, there will be more Americans over 65 than under 18 — the power of the elderly and nearly elderly may become almost absolute.

In this future, somebody will need to stand for the principle that Medicare can’t pay every bill and bless every procedure. Somebody will need to defend the younger generation’s promise (and its pocketbooks). Somebody will need to say “no” to retirees.

And I have no doubt the Right will do just that, as soon as they defeat health care reform.

It also needs to be said that while Medicare costs are rising, they are not rising nearly as fast as costs in the private health care sector. Inefficiency and excessive costs are only bad when they are found in government. If the private sector is bleeding you dry, you’re supposed to be thankful for capitalism.

Update: Nate Silver counts the Senate votes.

Boutique Insurance

I want to comment a little more on Newt’s op ed in the Los Angeles Times today, because he says some things that I have seen popping up in a lot of right-wing commentary.

One key proposal is to mandate an “essential benefit package” for every private insurance policy sold in the United States. Currently, individuals and employers usually make these coverage decisions. This legislation creates a new federal Health Benefits Advisory Committee that would decide instead. For example, if you are a single male with no children, the legislation still requires you to have maternity benefits and well-baby and well-child care coverage. You don’t want or don’t need that coverage? Sorry, you have to pay for it anyway.

Putting aside the fact that single men father children all the time, and in a perfect world those single men would be just as responsible for maternity and well-baby bills as married ones —

Insurance works by risk pooling — everybody throws money into a pot so that there’s money for people who are hit with unexpected expenses. In order for this to work, in any given year most of the people in the pool throw more money into the pot than take it out. Generally, the bigger the pool, the better it works. Insurance companies invest the premium money, and they make most of their profits from investments.

Maternity and well-baby care can be horrendously expensive, because horrible things can go wrong that require megabucks to care for. If the only people who are paying for maternity and well-baby care insurance are young couples who plan to have children, probably few of them could afford the insurance. It is made more affordable by throwing maternity and well-baby insurance into the big pot with toenail fungus, prostate cancer, high cholesterol and the flu.

But let’s be more frank about what Newt really is saying. Essentially, he is arguing against consumer protection. In many states, people are paying premiums for junk policies that turn out not to cover whatever medical problems they eventually develop. For example, we learned recently about a Blue Cross/Blue Shield policy that supposedly had maternity benefits. However, the maternity benefits didn’t cover the mother’s labor, delivery, or hospital stay, and a couple got hit with a $22,000 medical bill for the routine vaginal delivery of a healthy baby.

I’m not likely to ever need maternity benefits again, either, nor am I likely to get prostate cancer. But although there are a small number of conditions that are age and gender specific, the enormous majority of ailments in the world can strike anyone. Non-smokers sometimes get lung cancer. Long distance runners sometimes get heart disease. Young women sometimes get breast cancer. Ya never know. And because ya never know, it’s extremely stupid to pick and choose in advance what diseases or conditions your insurance does and does not cover.

What this is really about: The insurance companies want to separate people into low-risk and high-risk pools, because selling junk policies to low-risk clients is where the money is.

But in the doubletalk of the Right, consumer protection is painted as government interference. Shawn Tully of Fortune says the government wants to deprive you of the freedom to choose what’s in your plan. Righties seem to think people ought to have boutique insurance plans that only cover the ailments they are most likely to get, given their ages, genders and lifestyles.

But what happens when you develop a condition that’s not in your coverage? Oops, sorry, you’re not supposed to have heart disease at your age. You’re not covered for that. Is this not also a form of rationing?

I’ve seen this same “boutique” proposal from other conservative writers. There’s a dippy woman at the Manhattan Institute named Regina Herzlinger who wrote in the Washington Post last year,

In order for employers to get big discounts, they have to buy health care in bulk, offering just one or two basically identical plans to their employees. The result is consistent mediocrity. After all, how can Chrysler find a single health plan that works just as well for a 55-year-old diabetic with a bad back as it does for a 30-year-old triathlete who sees a doctor once every few years for a sprained ankle? Splitting the difference in these cases means that people do not get treated in the preventative or chronic-care settings that they really need.

How many ways does this not make any sense? First, it ignores risk pooling. Second, it ignores the fact that the triathlete will not be 30 years old and healthy forever. In fact, the triathlete could die of cancer next year, and the diabetic could live to be 90. Third, she seems to assume that the insurance companies are the ones directing the patient’s care, and not doctors. Well, that last one is too true.

The whole point of “not getting in between doctors and patients” is that whoever is paying for the care shouldn’t be second-guessing the doctors. In rightie world, it’s OK if the health insurance company kills you.

Newt repeats a pack of lies about Dr. Ezekiel J. Emanuel, already debunked by Alex Koppelman at Salon. He also wants to let people buy insurance across state lines, which I’ve written about in earlier posts. This would allow insurance companies to set up shop in low-regulation states and sell junk policies across state lines. According to the president of the National Association of Insurance Commissioners, Sandy Praeger,

Insurers will set up shop in states with few regulations and market low-cost policies to people across the country. These policies will offer minimal coverage and appeal primarily to younger consumers.

“It will be a race to the bottom,” Praeger said, and there will be “very few consumer protections. … You’ll have plans that don’t cover the benefits that people need. … And healthy people are going to buy those less costly plans, because they don’t think they need [the protection].”

That may be a good deal for young people who don’t have health problems, but it would probably become a bad deal for everyone else, Praeger said. The policies that sell comprehensive coverage would draw a sicker, older customer base, becoming more and more expensive.

The end result will be a segmenting of the insurance market into the “haves and have nots,” Praeger said. One segment of the market will become more affordable, but the other segment will become less so, disadvantaging those who need coverage most.

Rationing, anyone?

“This is a Third World country”

There’s a presentation of What’s Wrong With America in the Los Angeles Times today. There are feature stories on this week’s Remote Area Medical (RAM) health clinic in Inglewood, near Los Angeles, that shine a line on pain and medical neglect. Several of the physicians and dentists who volunteered to work at the one-week RAM fair also volunteer to work in Third World countries. And they said that what they were seeing in Inglewood was just as bad.

Steve Lopez, “At Free Clinic, Scenes From the Third World“:

Stan Brock, who founded RAM in 1985 to bring medical care to Third World countries, told me that in 1992 he began getting requests to do the same work in the United States.

“I don’t have the answers,” said [Dr. Mehrdad] Makhani, the dentist who insisted I look closely at his patient’s ailing mouth. “I’m not a politician. But I have people here with infected teeth, gums, abscesses. I saw a lady bus driver who lost her job and she’s walking around here crying. Her tooth is infected, she’s in pain and she can die from this. This is disastrous. This is a Third World country and people need to come and see this.”

“The people we’re seeing here have teeth as bad as the people in the Upper Amazon,” said Brock, who used to tangle with wild beasts on “Mutual of Omaha’s Wild Kingdom.”

One woman had lived with infected teeth for a year; she had no insurance because she had lost her job. She needed two extractions and a root canal. The dentist who took care of her, Joseph Chamberlain, also had done volunteer work in Brazil.

“They have a nice system of public hospitals and clinics,” he said.

But don’t patients have to wait for treatment?

“Yes,” Chamberlain said. “But not like this. Not for a year.”

I already mentioned the Tzu Chi Foundation, an international Buddhist charity headquartered in Taiwan. Tzu Chi does a lot of medical relief work in impoverished countries around the globe. And now it’s here. I can remember a time when it would have been unthinkable for an Asian charity to come to America to help the poor.

Eugene Taw, an ear, nose and throat specialist with the Buddhist Tzu Chi Free Clinic in Alhambra, was one of many Forum volunteers who has worked in other parts of the world. Yes, he said, there are far too many parallels between the uninsured in the United States and the residents of impoverished Third World nations.

At the Forum, his patients included a diabetic amputee who had not been able to buy his medicine for months, a retiree who couldn’t afford an X-ray for a lung problem, and a 30ish female diabetic with a kidney ailment so serious that Taw called for an ambulance to take her to a hospital.

Kimi Yoshimo, “How L.A.’s massive free clinic event came together“:

It’s pretty profound, the scale of it, the human stories,” Manelli said. “Those things don’t show up on a spreadsheet.”

In all, an estimated $500,000 in care has been provided daily to patients granted appointments on a first-come, first-served basis. Despite the pace, hundreds of uninsured and underinsured people have been turned away. Organizers lament that they could treat more if additional dentists and eye doctors showed up to volunteer in the clinic’s remaining few days.

One woman said she had received an abnormal pap smear result a year ago but was unable to get further medical attention. And then there is “The trumpeter who couldn’t play because he’s missing two teeth. The mother who camped overnight so her daughter could get glasses.” As one of the volunteer doctors said, these things don’t show up in a spreadsheet.

But it gets better. In this same newspaper, in the editorial section, there’s an op ed by Newt Gingrich warning America that if the Democratic plans for health care reform go through, we could have rationing.

Wow. Imagine.

The fear of government rationing is based on the premise that once government has such power, especially the ability to control what is covered by your private insurance policy, it also has the power to deny and restrict.

Those defending the House legislation claim rationing is not in any of its versions, and though that is technically true — no one wants rationing — the unprecedented power this legislation would grant to virtually unaccountable government agencies is all but certain to lead to rationing.

See, in a Free Country, the power to deny and restrict belongs to insurance companies, not the government.

I’ve got more to say, but I have to leave for a bit. I’ll get back to this later.

The Fog of Crazy

Brits are becoming increasingly alarmed and astonished at the lies being told about their National Health System. A sampling —

Americans should put their own health care in order” (Mike Ponton, Wales Online).

Britons rally to defend their healthcare system” (Henry Chu, Los Angeles Times).

In the US, my credit card saved my life” (Mitch Glickstein, The Guardian).

[Update: “‘We were duped’: Two British women tricked into becoming stars of campaign to sabotage Obama’s healthcare reforms” (Daily Mail)]

We here are used to it, of course. Nothing positive happens in the U.S. without quickly being smothered by a fog of crazy. But I think the Brits are genuinely shocked. They hadn’t fully appreciated how crazy The Crazy gets here.

I was going to write a longer piece about the fog of crazy, but fortunately Rick Perlstein has a piece in tomorrow’s Washington Post called “In America, Crazy Is a Preexisting Condition” that pretty much says everything I was going to say.

Update:Healthcare paranoia is part of America’s culture war” (Edward Luce, Financial Times)

The Health Care Cruise

One hears over and over that most Americans are happy with their health insurance and the health care they receive. I assume that is true. Righties hold this up as proof that most Americans don’t want to change the system. Polls say that is not true, or at least it wasn’t true before the “death panel” rumors got started. But I want to look at the fallacy behind the assumption that if most Americans are happy the system doesn’t need changing.

Our health care system is something like an old and slowly sinking cruise ship. Passengers on board the ship are having a reasonably enjoyable time. The food and entertainment are pretty good, and everyone still gets clean towels every day. However, in order to keep the ship afloat, from time to time the crew cancels the tickets of a few passengers and tosses them overboard.

At first most of the passengers were not aware this was happening. Or, if it was happening, passengers rationalized that the people tossed overboard must have done something to deserve it. But now enough people have been tossed overboard that most passengers were at least acquainted with one of the tossed, and knew he or she was not a bad person. Further, it is dawning on many that the selection process is random and could fall on anyone at any time, not just those in the cheapest cabins.

Meanwhile, slowly and imperceptibly, the ship continues to sink. The passenger-tossing strategy is just postponing the eventual drowning of everyone on board. So even though the cruise is pretty sweet for those remaining on the ship, there is a growing sentiment that there ought to be another way to keep the ship afloat.

Then the ship’s management announces that maybe there’s another way to keep the ship afloat, but it would require a lot of money to make repairs. Management promises it will only collect money from wealthy first-class passengers and will make up the rest of the difference by budget tightening.

The ship’s passengers divide into two factions. One faction wants to leave well enough alone. They refuse to accept that they might find themselves heaved overboard. They believe the cruise ship company will want more money from all the passengers, not just the wealthy ones, and they don’t see why they should pay more money to fund someone else’s cruise. They also deny that the ship is really sinking, even though all kinds of data have been collected showing that it is.

Passengers in the other faction are not just afraid of being thrown overboard. They also reason that expensive repairs are going to have to be made anyway, because the cruise is not sustainable. If nothing at all is done, eventually the ship will entirely flood with water and disappear into the sea.

The ship also has old and inefficient engines and other systems that make it more expensive to operate than most other cruise ships. If the repairs are done right, the ship could become more cost efficient to operate, and at some point in the future the repairs might actually pay for themselves. However, the longer the repairs are postponed, the more expensive the eventual repairs will be.

The anti-repair faction fights back by spreading rumors that the budget tightening will require passengers to be tossed overboard. The fact that this is happening anyway doesn’t register with these people. Soon they have the whole ship in an uproar, and leaders of the pro-repair faction begin to get death threats and find hate messages spray-painted on their cabin doors.

And there we leave the story, because we don’t yet know how it will turn out.

This is not a perfect analogy. To make it closer to reality we’d have to have vendors who are making a lot of money running the ship as it is begin the rumors to stop the repairs. We’d also have some anti-repair people coming up with nonsensical plans for saving the ship without repairing it. The plans amount to tossing people overboard, but they hide that part of the plan with lots of clever rhetoric.

And, of course, when the ship really sinks those wealthy enough to call for private rescue will transfer to one of the “socialist” ships.

If I had to guess how the story will turn out, it would be that a compromise is reached that amounts to patching the ship with chewing gum and duct tape, and passenger tossing will continue but at a somewhat slower rate for the immediate future. In a few months everyone will realize that nothing was really settled. Both factions will blame the other for the failure to find a solution, and the fight will resume.

Obama in Montana

Go ahead and discuss, if you are watching. I’ve got the television on, but Miss Lucy wants me to change the litter box first.

Update: I could have done without all the flapping about what a great guy Max Baucus is, but so far the presentation isn’t bad. On to the Q and A.

Why do we need a “uniquely American” health care system? That’s what we have now.

So far he’s not talking about the public option.

Well, it went OK, I thought. Nothing startling.

The Buddhist Takeover of America

I just learned that one of the sponsors of this week’s health fair in Los Angeles is the Tzu Chi Foundation, a Buddhist charity headquartered in Taiwan. Tzu Chi was organized by a nun, the Venerable Dharma Master Cheng Yen, and now claims 5 million members in 45 countries.

So I’m saying that if health care reform falls through, there’s a silver lining. As more and more Americans sink into medical destitution for lack of health care, we can round up Tzu Chi, Dharma Drum, and other international Buddhist charities to set up free clinics with a little dharma on the side. Heh.

This is a rumor you are welcome to spread.

Update: Now I’ve learned that Tzu Chi already has a permanent free clinic in Los Angeles. Hey, it’s how the Christian missions got started in Asia and Africa. Why not?

Update: Tzu Chi has already infiltrated Massachusetts. This was low-hanging fruit, of course. Once we have Texas, it’s all over. On to Dallas!

When Stating the Obvious Becomes an Act of Courage

First, the President is speaking in Montana today at another town hall meeting. I understand tickets are being handed out first come, first serve, instead of by the White House, so the audience could be a bit livelier than in the recent New Hampshire event. The meeting is supposed to start at 12:50 local time, which I think would be 2:50 EST. I don’t know if I will live blog — we’ll see — but I will look in on it and comment if anything significant happens.

And I trust the Secret Service will send everyone through five metal detectors and two dozen bag searches before they can be seated.

The New York Times is running a story on the origins of the “death panel” rumors. There isn’t anything in it that you don’t already know, I believe, but the fact that the New York Times is publishing this is itself noteworthy. And the fact that it’s noteworthy when a major newspapers publishes stuff we all already know is itself noteworthy, huh?

Meanwhile, Rudy Giuliani’s descent into political irrelevancy continues as he endorses the death panel rumors.

Scott Lehigh tells us that the anti-health reform mobs are made up of whackjobs. Wow, I wouldn’t have guessed.

Paul Krugman comments on how we are so not post partisan, are we?

It’s Scary Out There

There’s just way too much crazy going on for me to deal with. I want to go to a quiet place and play with small, gentle animals.

And you know that in a few months many of the same people screaming about death panels and Marxism will find themselves on the wrong end of a medical bill, or denied care, or lose their insurance, and then they’ll want to know why the government doesn’t do something about it. Well, if they need help, they should go ask Glenn Beck. He’ll be there for them, I’m sure.

The Secret Service has detained a man who was at a townhall meeting yesterday with a sign that said “Death To Obama, Death To Michelle And Her Two Stupid Kids.”

See:

Jonathan Cohn, “The Swiftboating of Health Reform

Todd Gitlin, “Pre-Existing Conditions